Wednesday, March 10, 2010

What if you:

  • Increased sales volume by one percent
  • Increased prices by one percent?
  • Reduced your cost of goods by one percent?
  • Reduced your operating costs by one percent? 

Would you be surprised if the net effect of those tiny adjustments could improve your bottom line by over 50%?  Well, it's true!  If you have any doubts, click the Calculator link and test it against the actual results of some major US corporations or enter the results of your business to see what the difference would be.  You will be surprised.

The One Percent Manager is about helping people in all levels of an organization find the one percents that will add up to big differences in the bottom line.  In these difficult times it is the responsibility of every person in a business to find ways to improve the operational performance that business.  Certainly every business needs a strategy; but execution is what makes the difference.  A one percent increase in sales does not just happen, somebody needs create a plan and then execute. 

Over time, this site will become a repository for articles, success stories and general information that will help you become a One Percent Manager.  By signing up, you will have the opportunity to contribute to the site and help others improve their business.  Ultimately, we want to make you a better One Percent Manager.

One Percent Trade-Offs

The concept of the One Percent Manager seems pretty simple.  But what if cutting marketing costs actually increases related selling costs because the salesperson is spending more time with the prospect and closing fewer sales?

The reality is that actions have consequences and when making cuts in one place it is essential that you do not unwittingly increase costs somewhere else. 

The video link on your right addresses what is called "Operational Leverage".  It discusses the results of a multi-year study of companies who have cut costs.  Click on the picture to view.

Featured Blog Entries

Leads Drive Revenue

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Win/Loss Analysis

Win/Loss analysis is a seldom done method to increase the effectiveness of your sales process.  Why don't companies take more interest?

Five Steps to One Percent Management: Creating Specific Objectives

If you are going to get somewhere specific, you have to plan.  To start planning, you need objectives; a high level definition of where you are trying to get to.  This entry discusses the elements of good objectives.

Business Book Brief

In the Knack, veteran entrepreneur Norm Brodsky, the man behind Inc.'s popular Street Smarts column, and Inc. editor-at-large Bo Burlingham, team up to offer some practical hands-on advice to anyone in business.
The One Percent Calculator let's you see and simulate what happens by applying those one percent improvements. You can enter your own data or use the actual results from some major corporations. Use the slider bars to further explore the possibilities.
Paul Blase, Managing Partner of Business Design & Performance Improvement at Diamond, discusses the hidden costs of cutting costs and finding ways to gain Operating Leverage.
In the Knack, veteran entrepreneur Norm Brodsky, the man behind Inc.'s popular Street Smarts column, and Inc. editor-at-large Bo Burlingham, team up to offer some practical hands-on advice to anyone in business.

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